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July 14, 2024

Moody’s say Phl banks competently managed

Moody’s Investors Service said Philippine banks are competently managed, well capitalized, and profitable despite the impact of the COVID pandemic.

In its latest credit opinion, the credit rating agency assessed the banking sector risk at “a”.

“The banking system as a whole is well capitalized, profitable and competently managed, thus posing limited contingent risks to the government,” Moody’s said.

In addition, the sovereign debt watcher also pointed out that stringent oversight by the Bangko Sentral ng Pilipinas (BSP) supports financial stability.

According to Moody’s, the Philippine central bank has adopted international regulatory standards and preemptive macroprudential measures.

The credit rater revised the credit rating outlook of Philippine banks to stable in April last year after lowering it to negative during the height of the global health crisis in April 2020.

“In April 2021, we changed our banking system outlook to stable from negative to reflect our expectations that a mild economic recovery will support the operating environment for banks,” Moody’s said.

The banking sector is dominated by Sy-owned BDO Unibank, Ty-led Metropolitan Bank & Trust Company, Ayala-led Bank of the Philippine Islands, Lucio Tan-owned Philippine National Bank, Sy-led China Bank, Yuchengco-owned Rizal Commercial Banking Corp., Security Bank of businessman Frederick Dy, and Aboitiz-owned UnionBank, among others.